Contract Management

The multiple functions provided by this module group allow financial services providers to process contract management and bookkeeping for the available types of business, such as retail financing for credit and leasing, and wholesale financing. The fully automated processes ensure that all standardised, recurring operations relating to contract management and contract bookkeeping are carried out without manual intervention, thus enabling them to be completed considerably faster and without error.

This module group enables the execution of all business transactions required for opening, processing and terminating contracts. In the field of wholesale financing, a fully integrated dunning system complements the scope of functions.

Individual accounts and accounting functions for the automated recording of all contract-related income and expenses, revenues and expenditures as well as deposits and withdrawals ensure full contract bookkeeping. Functions for the automated processing of incoming and outgoing payment transactions and for receivables management complete the range of services.

External systems for accounting, reporting and payment transactions are integrated via standardised interfaces. All necessary information relating to contract bookkeeping is transferred to the financial and cost accounting sections of the central accounting department, and upon request to group accounting. An asset accounting function is provided or integrated for the leasing area.

Features Contract Management

  • Specialised modules for various user groups, such as bank employees and employees working at the point of sale
  • Standardised business transactions for business types such as retail financing for credit and leasing or wholesale financing
  • Support for the opening of contracts, i.e. activation/validation for disbursement and for the automated receipt of payments or termination of payments, if the contract is not concluded
  • High usability in contract processing, e.g. changes to the asset or product, extensions and inclusion of another lessee in the leasing contract or, for example, in the case of extensions or special repayments in wholesale financing
  • Simple execution of regular or premature contract termination, e.g. revocation or rescission in wholesale financing
  • Automated processes, generated by business transactions that perform functions on the relevant maturity date and post entries in contract bookkeeping
  • Manual entries for special occurrences using ready-made booking templates, including pre-filled data and validation
  • Recording of all entries and automatic actions in the journal according to time by value date and entry date and period, and objectively sorted by for example department, client, document number, document item, document text, amount, ledger, personal account, contract account
  • A comfortable, purposeful search of information through targeted search, and the selection of sorting criteria and search filters
  • Company code-specific enclosures and maintenance of the required unified accounting systems, defining limits and balances as well as person or contract related settlement accounts
  • Automated compensation of claims under integrated receivables management and manual clearing for unrecognised items
  • Integrated, standardised dunning with dunning history and overview of the current backlogs in the different dunning levels
  • Special booking functions for fully automated payment transactions with interfaces to payment systems in order to effect the payments in inter-bank transactions
  • Transferring bookings of contract accounting backed up by additional information at least daily to the general bookkeeping department via standardised interfaces and ensuring the correctness of the transmission via reconciliation functions
  • Providing information for reporting and controlling via standardised interfaces
    Contract Management in the afb Credit Management Solution

    Advantages at a glance

    • End-to-end system: the entire life cycle of a contract – from its opening, processing right through to its termination – is designed as a fully integrated, digital system.
    • Free choice of sales channels: the functions of contract management and bookkeeping are no longer performed only by employees of the financial services provider, but are made available to employees at the point of sale (POS), as well as to field staff and other partners involved in the conduct of business.
    • Improved competitiveness: previous front and backoffice functions are mapped for all business types in an integrated, web-based system. As a result, efficiency, quality and customer orientation are significantly increased, thereby enabling successful differentiation in the market.
    • High level of automation: the solution is designed for large volumes, standardised processes, fast decisions and automated contract management. If necessary, the system also supports authorised personnel with manual processing.
    • Flexible financial products: flexible financial products for specific business types can be provided without restrictions between front and back office in a very short time.
    • Multi-currency capability: the module group supports country-specific formats. The ability to manage currencies and exchange rates is an important prerequisite, particularly for international companies.

     

    • Multi-client capability: the module group supports several company codes/clients per business transaction. This means that each client has its own accounting system, payment transaction accounts and general ledger accounts as well as specifically established export and import functions for payment transactions, general ledger export and sub-ledger import.
    • Local and international accounting principles: parallel accounting pursuant to local and global accounting standards such as HGB and IFRS by means of account areas in contract bookkeeping is possible at any time. In asset accounting, parallel accounting is mapped fiscally, locally and globally through the assessment areas, e.g. HGB and IFRS.
    • Proper accounting: all commercial and tax requirements for accounting systems are supported. This includes the principles of proper bookkeeping and IT-supported bookkeeping systems (GoB, GoBS), Principles of Data Access and Verifiability of Digital Documents (GDPdU) and in this context, the statements released by the German Institute of Chartered Accountants (IDW).
    • Flexible execution of orders: the automated function is not tied to fixed batch runs, but can significantly regulate the daily business flow by choosing any execution date.
    • Centralised view of all contracts: data can be displayed from the perspective of both an individual contract and all contracts in real time.

     

    For more information, please contact us

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